Auto-enrolment to hit 200,000 jobs

Jenna Towler
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Auto-enrolment could lead to 200,000 job losses at smaller firms as labour costs will increase by around 2%, academic research predicts.

From 2012 workers will be auto-enrolled into a qualifying work place pension, or the personal accounts scheme, unless they opt-out. Pension Commission, and later the department for work and pensions, research estimated labour costs of 0.6% for all firms, and 1.1% for the smallest firms. However, a study from the University of Warwick’s Institute for Employment Research said the figure would stand at 2% when administration, target market salary levels and predicted take-up rates are taken into account. Author Bernard Casey surveyed small employers and questioned them on th...

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